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Peugeot takes German route

The French carmaker wants a share of the premium market dominated by BMW and Audi

IT looks like a more racy version of the Audi TT - but the surprise is that it's a Peugeot. The sleek coupé, labelled "concept car" on the Peugeot stand at last week's Lisbon motor show, is destined to become a production model in 2010.

The announcement was made by Peugeot brand chief Jean-Philippe Collin, who explained that this was a new departure for Peugeot, the first of a series of "competitive premium cars" with which the French will fight back against the Germans.

Peugeot's idea is to bring the qualities of a German premium brand such as Audi to a wider audience at a lower price. Its TT equivalent is the RCZ and it will sit at the heart of the range, creating a halo for the company's more practical, everyday family cars.

Advertisements created by Citroën, Peugeot's associate brand, emphasise the dilemma facing the French motor industry. A comic-book